We can confirm that the mutual interdependence that characterizes oligopoly arises because the output for a given market is being generated by a small group of companies.
What is oligopoly?
Oligopoly is when the market for a given product is controlled by only a few of the companies that create said product. This situation can have benefits as well as drawbacks. A benefit would be increased product variation, providing more choices for consumers, while a drawback would be a lack of competition to keep prices low.
Therefore, we can confirm that the mutual interdependence that characterizes oligopoly arises because the output for a given market is being generated by a small group of companies.
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